The Minister for Transport, Mr Brennan, said that while Ryanair will be disappointed by the European Commission ruling it was much softer than had been expected.

Reacting to the ruling yesterday, the Minister said it would have no bearing for Cork or Shannon airports and posed no threat to his proposed break-up of Aer Rianta.

Mr Brennan said he had tabled the issue for discussion at a meeting of the EU transport ministers next month which would give the Government an opportunity to voice its strong support for low-cost airlines.

He said that while Ryanair was very disappointed with the outcome that there was some "silver lining".

The Minister pointed out that Ryanair had been expecting to repay up to €15 million but would not pay back more than €4 million.

The Minister also highlighted the fact that marketing and other incentives provided to promote new routes from Charleroi were reportedly to be restricted to three years but had been lengthened to five.

The Minister said that Ms De Palacio's decision to hold off from using the ruling to issue guidelines for Europe's airports was the most significant concession yielded.

"I am greatly relieved that the Commissioner listened to us and other transport ministers in not moving on general rules. Now 25 others will have an input," he said.

The Government has always supported the EU's tough stance on the banning of state aid which had been introduced to help airlines such as Ryanair to develop.

Mr Brennan said he had also expressed his concerns about how the ruling might affect Aer Lingus.

"If Aer Lingus wanted to go to eastern Europe and wanted to do deals with airports, there was a concern it might be stopped," he said.

The Minister said the ruling was aimed at ensuring that airports would have to be fully commercial.

He said that Aer Rianta could continue to offer discounts to airlines but that the Government wasn't allowed to put money into the airport operator that could be passed on as a subsidy to airlines.